US Needs More Fab Capacity, Chip Funding, Commerce Says

The Commerce Department this week released the results of its 2021 request for information on risks in the semiconductor supply chain (see 2109230018), finding that greater U.S. fab capacity would help alleviate chip supply chain issues. The agency also said U.S. semiconductor companies have “significantly increased the utilization of their existing capacity” since the chip shortage began in 2020, but demand continues to outpace supply. In a report outlining the results, Commerce urged Congress to fund legislation that would provide more support and incentives for the semiconductor industry. “The RFI results make it clear: America needs to produce more semiconductors,” Commerce said. “Congress must pass funding for domestic semiconductor production, such as the U.S. Innovation and Competition Act, to solve our supply challenges for the long term.”